# Stock Market Average Calculator - Online

## How to Calculate Stock Average Price?

Learn how to calculate the average price of stocks by following these examples:

**Example 1:** You buy 100 units of a stock at $5 per share and then buy another 100 units at $6 per share. What is the average price per share?

- Firstly, calculate the total cost for each purchase:
- Total cost of first purchase = 100 units × $5 = $500
- Total cost of second purchase = 100 units × $6 = $600
- Now, calculate the total number of units purchased: 100 + 100 = 200 units
- Calculate the total amount invested: $500 + $600 = $1100
- Finally, calculate the average price per unit: $1100 / 200 = $5.50

**Example 2:** You buy 50 units of a stock at $8 per share and then buy another 150 units at $10 per share. What is the average price per share?

- Firstly, calculate the total cost for each purchase:
- Total cost of first purchase = 50 units × $8 = $400
- Total cost of second purchase = 150 units × $10 = $1500
- Now, calculate the total number of units purchased: 50 + 150 = 200 units
- Calculate the total amount invested: $400 + $1500 = $1900
- Finally, calculate the average price per unit: $1900 / 200 = $9.50

**Example 3:** You buy 200 units of a stock at $15 per share, then buy 100 units at $20 per share, and finally buy 50 units at $25 per share. What is the average price per share?

- Firstly, calculate the total cost for each purchase:
- Total cost of first purchase = 200 units × $15 = $3000
- Total cost of second purchase = 100 units × $20 = $2000
- Total cost of third purchase = 50 units × $25 = $1250
- Now, calculate the total number of units purchased: 200 + 100 + 50 = 350 units
- Calculate the total amount invested: $3000 + $2000 + $1250 = $6250
- Finally, calculate the average price per unit: $6250 / 350 = $17.86

### Stock Average Price Formula

The general formula for calculating the average price of stocks is:

`Average Price per Unit = (Total Cost of All Purchases) / (Total Number of Units Purchased)`

This formula helps you determine the average price per unit after multiple purchases, allowing you to better understand your investment cost.

## Stock Market Average Calculator Description

The Stock Market Average Calculator is an easy-to-use tool designed to help investors calculate the average price of stocks across multiple purchases, providing a clear understanding of their investment cost basis. This calculator allows users to input up to three different stock purchases, including the number of units and price per share for each transaction and then calculates the total units purchased, total investment amount, and average price per share. It is ideal for investors who buy stocks at different prices over time, offering an accurate calculation of the average cost of investment. Use this stock average calculator to optimize your investment decisions, better track your portfolio, and manage your finances effectively.

## How to Use the Stock Market Average Calculator?

Follow these steps to use the stock market average calculator effectively:

**Step 1:** Enter the number of units purchased during the first transaction in the field labeled "First Purchase - Units." For example, if you bought 100 units, enter "100".

**Step 2:** Enter the price per share for the first transaction in the field labeled "First Purchase - Price per share." For example, if you paid $5 per share, enter "5".

**Step 3:** Enter the number of units purchased during the second transaction in the field labeled "Second Purchase - Units." For example, if you bought another 100 units, enter "100".

**Step 4:** Enter the price per share for the second transaction in the field labeled "Second Purchase - Price per share." For example, if you paid $6 per share, enter "6".

**Step 5:** If you made a third purchase, enter the number of units in the field labeled "Third Purchase - Units" and the price per share in the field labeled "Third Purchase - Price per share." These fields are optional.

**Step 6:** Click the "Calculate Average" button to see the results. The calculator will display the total units purchased, the average price per unit, and the total amount invested.

This calculator helps you determine the average price of shares when buying stocks at different prices, giving you a better understanding of your overall investment cost.

## References to Learn More About Stock Calculations

- Investopedia: Average Cost Method - Learn about the average cost method and how it is applied to stocks.
- Janus Henderson Investors: How to Calculate Average Cost - Find out how to calculate average cost for investments effectively with Janus Henderson Investors' guide.

These resources will help you gain a deeper understanding of stock calculations, including the average price per unit and overall investment strategies.